New Zealand’s housing market is showing signs of recovery, as property values rose across more than half of New Zealand's suburbs, a new report from CoreLogic says.
Of the 935 suburbs analysed using the financial services company’s interactive Mapping the Market tool, 549 – or almost three-fifths (58.7%) – saw an uptick in median estimated property values in the three months to March.
Of the 386 suburbs in decline, just 152 saw falls of 1% or more since December last year.
CoreLogic NZ chief property economist Kelvin Davidson said over the three months to March, 103 suburbs saw value gains of at least 2%, while a further seven were up by 5% or more.
Davidson said four of the seven “fast riser” suburbs – Blaketown and Cobden in Grey District, Patea in South Taranaki, and Wellington Central – “currently have median values under $500k”.
In addition, 27 areas saw values increase by at least 5% over the year to March – 10 of them in Auckland. It was followed by seven in Wellington and five in Queenstown.
“Queenstown continues to demonstrate market resilience, with growth in Sunshine Bay (10.6%) a standout example,” Davidson said.
“The presence of Grey District in these lists illustrates its affordable starting point, while Auckland and Wellington fell quickly, so perhaps have more ‘headroom’ to recover too.”
Davidson said the data confirms that recovery is spreading further afield as mortgage rates top out, employment continues to rise, migration remains high, and credit conditions ease.
“This only reiterates the view that the market’s recovery is unlikely to be a straight line from month to month, or region to region,” he said.
“With mortgage rates still high and affordability stretched in many areas, an underwhelming upturn remains on the cards for 2024.”
Auckland
In Auckland, a little more than half (52%) of its suburbs saw values rise over the past 12 months. Of that number, 10 saw an increase of at least 10% - including Fairview Heights, Somerville, Northpark, Pinehill, and East Tamaki.
Herne Bay remains the supercity’s most expensive market, with a median value of $3.31 million. The most affordable is in Manukau and Auckland Central, with both suburbs touting median values less than $600,000.
Hamilton
While median property values have fallen across most of Hamilton in the past year, a rebound is afoot.
Thirteen suburbs are up since December, including a 1.0% rise in Fairview Downs and 1.1% lift in Claudelands.
Harrowfield is the most expensive suburb, with a median value of $1.11 million. Bader is the cheapest at $590,900.
Tauranga
Tauranga is showing clearer signs of recovery, with 14 suburbs seeing quarterly value increases. Gains of at least 2% were seen in Poike, Parkvale and Judea.
The most expensive suburb is Mount Maunganui at $1.32 million, while the cheapest is Parkvale at $666,050.
Wellington
The capital is bouncing back after values fell sharply in recent months, with just 16 suburbs seeing values drop since December, while 11 were up 3% or more.
Seatoun remains the most expensive suburb at $1.74m, while Wellington Central is the cheapest at $485,350.
Christchurch
Property values are blooming in the garden city, with 17 of its 82 suburbs seeing gains of at least 3% in the past year. Just seven suburbs have seen values drop in the same period.
Fendalton is the priciest at $1.66 million, while Phillipstown is the cheapest at $447,400.
Dunedin
Dunedin is also showing some gains, with 39 suburbs’ values rising since December. The strongest is North Dunedin with 3.6%, followed hot on its heels by Dunedin Central at 3.5%.
The most expensive is Maori Hill – the city’s only market with a median value at or above $1. However, Vauxhall is quickly catching up, boasting a median value of $976,850. The most affordable suburb is South Dunedin at $407,500.
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